Bpifrance and the European Investment Bank Group (EIB) confirm their strong commitment to economic recovery in France. The EIB supports the action taken by Bpifrance to underpin the green transition of mid-caps. A subsidiary of the EIB, the European Investment Fund (EIF) renews its guarantee to finance innovation and the “French Touch”, and expands its support to new segments such as the “French Fab”.
Long-standing partners in supporting the growth of French businesses, the EIB Group and Bpifrance have strengthened their joint initiatives since 2015 under the Investment Plan for Europe (also known as the Juncker Plan). In 2021, seven agreements were added to this partnership to offer a range of financing operations matching the needs of businesses to aid recovery.
These operations were made possible thanks to the support of the EIB and the EIF, either under the Pan-European Guarantee Fund, a stimulus instrument set up by the EIB Group on the basis of contributions from France and other EU Member States, or under the European Fund for Strategic Investments (EFSI) which forms part of the Juncker Plan.
EIB Vice-President Ambroise Fayolle welcomed the fact that "the EIB and Bpifrance are expanding their joint operations to meet the investment needs of French businesses, particularly in the areas of climate action and innovation. This collaboration demonstrates very concretely the importance of EU efforts to support recovery both in France and in the rest of the European Union.”
EIF Chief Executive Alain Godard stressed that "the strong partnership we have with Bpifrance illustrates Europe’s support for the real economy in France. Working hand in hand, the EIF and Bpifrance will be able to provide French SMEs with unprecedented amounts, based around common priorities such as innovation, digitalisation and the green transition.”
Managing Director of Bpifrance Nicolas Dufourcq hailed these new collaborations that "place Bpifrance at the heart of the European recovery plan for France. The amount of agreements signed in 2021, equivalent to the aggregate for the previous seven years, is commensurate with the challenges facing our economy. The EIB Group’s backing enables us to meet the short-term needs of French businesses and also supports Bpifrance’s strategic priorities, particularly in terms of the triptych of the French “Fab, Touch and Tech” and the “Coq Vert” community symbolising the industry of the future.”
Increased support for innovation, creation and culture to the tune of €1.3 billion
In 2022, the EIF is renewing its guarantee of two major financing tools for Bpifrance to aid recovery, which will be able to mobilise:
- €1.2 billion in “Start-up”, “Investment Seed” and “Innovation” loans to support innovative SMEs and small mid-caps from their fundraising to their industrial and commercial launch. More than 7 000 loans totalling over €2.4 billion have been granted to innovative businesses thanks to the support of the EIF since 2013.
- €100 million worth of “Touch Loans” for a maximum term increased to ten years (vs. seven years previously) intended for businesses in creative and cultural industries. Nearly €110 million of Touch Loans have been provided for 300 French Touch businesses since 2017.
New cooperation for the French Fab, the green and energy transition and for pre-financing contracts totalling almost €3 billion
Bpifrance and the EIB Group are expanding their collaboration to new objectives, in line with Bpifrance’s strategic priorities for recovery, and dedicating €575 million to industry and the green and energy transition of businesses.
In 2022, support from the EIF will enable Bpifrance to provide €200 million in “SME Industry Loans” and to support up to 200 businesses undertaking a structuring investment programme designed to increase their production capacities. The funding will cover amounts between €50 000 and €2 million over a term of two to ten years, including a grace period of up to 24 months.
In line with the climate objectives of the two institutions, an agreement between the EIB and Bpifrance will enable Bpifrance to mobilise, by 2024, up to €375 million in additional loans for mid-caps that have started their green transition or are providing solutions to speed up the transition of the economic fabric. This agreement complements already active cooperation on the mid-cap segment that has supported some 50 companies since 2018 with a total of €240 million.
Lastly, Bpifrance benefits from the EIF guarantee on €1.4 billion of “Advances + Pre-financing” providing SMEs with the liquidity needed to launch public or private contracts from which they take advantage. This offer complements the agreement with the EIB for a €1 billion package of similar short-term financing for mid-caps, announced last May. These two schemes enable SMEs and mid-caps to be supported by amounts ranging from €100 000 to €50 million for a maximum term of 24 months.
These guarantee agreements on Bpifrance loans complement the cooperation in equity and quasi-equity of the three institutions, which includes the EIB’s subscription announced last May to the France Investissement Tourisme 2 fund (FIT2) launched in 2020 by Bpifrance and endowed with nearly €190 million to support and assist tourism operators negatively impacted by the health crisis.
Among the companies that have already benefited from this funding is Potel et Chabot, France’s leading company for hosting prestigious receptions. Its CEO Alain Postic welcomed "Bpifrance’s entry into the group’s round table through the FIT2 fund, subscribed by the EIB. Alongside the controlling shareholders, the state and the banking partners, the refinancing conducted in 2021 helped to preserve bicentennial expertise and strengthen a leading group in the gastronomic event market in France and internationally.”
Background information
About Bpifrance
Bpifrance finances businesses — at every stage of their development — by providing credit, guarantees and equity. Bpifrance supports them with their innovation projects and on international markets. Bpifrance also assists them with their export business via a wide range of products. Advisory and university services, networking and an acceleration programme for start-ups, small and medium-sized enterprises and mid-caps are among the other options offered to businesses. Thanks to Bpifrance and its 50 regional branches, businesses benefit from a single, efficient local player to meet their challenges.
About the Pan-European Guarantee Fund
The Pan-European Guarantee Fund was set up by the EIB Group based on contributions from France and other EU Member States with the aim of protecting companies affected by the COVID-19 pandemic. With almost €25 billion in guarantees, the Pan-European Guarantee Fund enables the EIB and the EIF to provide loans, guarantees, equity and other financial instruments quickly, and also operate in securitisation, mainly to support small and medium-sized enterprises. The Pan-European Guarantee Fund is part of the European Union’s recovery programme, which aims to provide a total of €540 billion to stimulate the hardest-hit sectors of the EU economy.
About the European Fund for Strategic Investments (EFSI)
The European Fund for Strategic Investments (EFSI) is the central pillar of the Investment Plan for Europe. It provides first-loss guarantees, enabling the EIB to invest in more, and often riskier projects. The projects and agreements approved for financing under EFSI should make it possible to mobilise €546.5 billion of investment and support more than 1.5 million companies in the European Union.
About Potel et Chabot
Since 1820, the catering house created by Jean-François Potel, pastry cook of Rue Vivienne, and Etienne Chabot, a renowned cook of the French Court, has continued to meet its challenges with the same demands, whether catering for 10 or 5 000 guests. Potel et Chabot is not just demanding in terms of gastronomy: tailor-made service, scenography, tablesetting, floral decoration, ice sculpture, etc. are all mastered internally to create exceptional events. Some figures: 200 years of experience, 450 employees, turnover of €120 million (except during the COVID-19 crisis), eight exceptional locations covering 5 000 m² dedicated to scenography.